SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments is experiencing positive growth across its segments, with an increase in institutional investors' margins from 47.6% to 48.3%, indicating a strengthening financial performance. The firm manages approximately $1.6 trillion in assets, benefiting from rising asset values and a robust pipeline, particularly in private banking and alternative investment opportunities. Additionally, Stratos is demonstrating promising growth with a 10% organic growth rate and a 40%+ EBITDA margin, supported by strategic investments in talent and technology aimed at bolstering future expansion.

SEI Investments is experiencing decreasing operating margins across key segments, with the private banks segment declining to 16.1% and a consolidated operating margin of 27.2%, down from 28.5% in the prior quarter. Despite managing approximately $1.6 trillion in assets, net sales events fell dramatically to $29.2 million in 2Q25 from $46.6 million, indicating a potential slowdown in growth and reduced recurring revenue. Furthermore, management's expectation of maintaining margins near 2Q levels through year-end, combined with lowered EPS estimates for 2025 and 2026, underscores a deteriorating outlook for the company's financial performance.